US tariffs causing global commodity market volatility

The global commodity market is facing instability due to U.S. trade policies under President Donald Trump. Recent tariffs on countries like China, Canada, and Mexico have raised fears of a global trade war. This situation has caused significant price fluctuations in various commodities. Gold has seen a strong performance, with prices in London reaching around $3,000 an ounce. This marks a 15 percent increase this year. In India, gold prices also hit a new high at ₹88,800 per ten grams. As a safe investment during economic uncertainty, demand for gold has risen due to fears of inflation and slower growth. Silver has also gained popularity, rising over 17 percent this year. Domestic prices have crossed ₹1,00,000 per kg. Base metals like copper and aluminum have surged as well. Copper prices have increased about 15 percent this year, while aluminum gained over 27 percent, driven by demand from China and concerns over supply issues. Despite gains in metals, crude oil prices are trending down. U.S. WTI futures have dropped by 8 percent in the first quarter of 2025. This decline is linked to worries about reduced demand amid a slowing global economy. Natural gas prices, on the other hand, have remained stable with slight increases due to higher demand for heating. Looking ahead, the commodity market is expected to stay volatile. Although easing tensions in conflict areas could boost the global economy, the unpredictable trade policies from the U.S. might hinder economic growth worldwide.